BILL NUMBER: SB 630	CHAPTERED  10/10/99

	CHAPTER   728
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN ASSEMBLY   AUGUST 31, 1999
	AMENDED IN ASSEMBLY   AUGUST 26, 1999
	AMENDED IN SENATE   JUNE 30, 1999
	AMENDED IN SENATE   JUNE 24, 1999
	AMENDED IN SENATE   MAY 18, 1999
	AMENDED IN SENATE   APRIL 26, 1999

INTRODUCED BY   Senator Dunn
   (Principal coauthors:  Senators Baca, Chesbro, Johannessen, and
Knight)
   (Principal coauthor:  Assembly Member Machado)
   (Coauthors:  Senators Costa and Speier)
   (Coauthors:  Assembly Members Alquist, Bock, Cardoza, Correa,
Dickerson, Ducheny, Havice, Honda, Knox, Longville, Lowenthal,
Mazzoni, Nakano, Romero, Scott, Soto, Strom-Martin,  Wayne, Wildman,
Davis, Kuehl, and Wiggins)

                        FEBRUARY 24, 1999

   An act to amend Section 15819.90 of the Government Code, and to
add Chapter 2 (commencing with Section 1100) to Division 5 of the
Military and Veterans Code, relating to veterans' homes, by providing
the funds necessary therefor through an election for, and the
issuance and sale of, bonds of the State of California and by
providing for the handling and disposition of those funds, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 630, Dunn.  Veterans' homes.
   Existing law establishes a Veterans' Home of California,
Yountville, and authorizes the Department of Veterans Affairs to
establish and construct a 2nd home located at Barstow and on 3
additional sites in southern California.  Existing law authorizes the
California Veterans Board to issue revenue bonds, negotiable notes,
or negotiable bond anticipation notes for the construction of homes
at these 3 additional locations.
   This bill would enact the Veterans' Homes Bond Act of 2000 which,
upon approval of the state electorate, would authorize, for purposes
of financing a plan for the design and construction of veterans'
homes in the state, the issuance, pursuant to the State General
Obligation Bond Law, of bonds in the amount of $50,000,000.  This
bill would give first priority to funding construction or renovation
of the veterans' homes described in specified provisions of existing
law.
   The bill would provide for submission of these provisions to the
voters at the March 7, 2000, statewide primary election in accordance
with specified law.
   Upon the adoption by the voters at the March 7, 2000, statewide
primary election of the Veterans' Bond Act of 2000, as specified
above, the bill also would limit the existing authority to issue
revenue bonds, negotiable notes, or negotiable bond anticipation
notes as described above, to the issuance of those bonds and notes
only for the construction of the veterans home at the 2nd site after
the construction of the 1st site at Barstow is completed and opened.

   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature hereby finds and declares as
follows:
   (1) The state has opened veterans' homes in the following areas:
   (A) Yountville, Napa County, in 1884, which is home to 1125
veterans and is a California State Historical Landmark listed in the
California Register of Historical Places.
   (B) Barstow, San Bernardino County, in 1996, which is home to 400
veterans.
   (2) A veterans' home is under construction in Chula Vista, San
Diego County, which will be home to 400 veterans.
   (3) There are plans to construct veterans' homes in Lancaster, Los
Angeles County, and in Saticoy, Ventura County.
   (4) California's Department of Veterans Affairs forecasts a state
and federal need of eighty-nine million eight hundred thousand
dollars ($89,800,000) to construct veterans' homes in California over
the next 10 years.
   (5) The department anticipates the need for at least two
additional veterans' homes within the next decade.
   (6) There are more than 3,000,000 veterans who live in the state.

   (7) Recent studies show that the number of veterans who qualify to
reside in veterans' homes will increase over the next decade.
   (8) The general policy of the department is to not accept veterans
into existing veterans' homes who suffer from Alzheimer's disease or
other diseases causing dementia.
   (b) It is the intent of the Legislature, in enacting this bill, to
do all of the following:
   (1) Place on the November 7, 2000, general election ballot, a
fifty million dollar ($50,000,000) bond act for the construction of
veterans' homes in California.
   (2) Expand the state's policy to accept into the veterans' homes
those veterans who suffer from Alzheimer's disease or other diseases
causing dementia.
   (3) Set a goal of at least 3 percent of the construction contracts
for these homes to be awarded to disabled veteran business
enterprises.
  SEC. 1.5.  Section 15819.90 of the Government Code is amended to
read:
   15819.90.  (a) It is the intent of the Legislature to make an
appropriation for three additional sites of the Southern California
Veterans' Home, for a total of four sites.
   (b) (1) (A) The board shall issue revenue bonds, negotiable notes,
or negotiable bond anticipation notes pursuant to Chapter 5
(commencing with Section 15830) to finance the construction of an
additional site of the Southern California Veterans' Home only in
accordance with subparagraph (B).
   (B) Authorization and bond issuance for the second site shall take
place after the department certifies that the construction of the
first site, the veterans' home at Barstow, as set forth in Section
15819.85, has been completed and opened, and demonstrates to the
State Public Works Board that the facility is fully operational and
that there is a demonstrated demand for a second site.
   (2) The second, third, and fourth sites shall be in addition to
the first site provided for in Section 15819.85.
   (c) The amount of revenue bonds, negotiable notes, or negotiable
bond anticipation notes to be sold pursuant to Chapter 5 (commencing
with Section 15830) for capital outlay for this purpose shall not
exceed the sum of twelve million dollars ($12,000,000).  This amount
shall be available as necessary for the site studies, suitability
reports, environmental studies, master planning, architectural
programming, schematics, preliminary plans, working drawings,
construction, and equipment of  site two of the Southern California
Veterans Home.  These funds shall also be used for repayment of any
loan made pursuant to former Section 15819.90, as added by Chapter
943 of the Statutes of 1995, for costs related to the first and
second sites.
   (d) In addition to the funds appropriated pursuant to subdivision
(g), the sum of sixty-six million dollars ($66,000,000) in federal
matching funds available pursuant to the State Veterans' Home
Assistance Improvement Act of 1977 (38 U.S.C.A. Sec. 8131 et seq.),
is hereby appropriated to the board on behalf of the Department of
Veterans Affairs for the purposes of construction or repayment of any
loan related to the second, third, and fourth sites of the Southern
California Veterans' Home.  In the event that bonds are not issued or
sold, any loans for the purposes of this section or former Section
15819.90, shall be repaid from the department's annual support
appropriations.
   (e) The amount of revenue bonds, negotiable notes, or negotiable
bond anticipation notes to be sold shall equal the costs of
performance of all functions referred to in subdivision (c), and any
additional amounts, as specified in subdivision (h).
   (f) The amount of negotiable bond anticipation notes to be sold
pursuant to this section shall not exceed the amount of revenue bonds
or negotiable notes authorized by this section.
   (g) Notwithstanding Section 13340, funds derived for the purposes
of this section from the financing methods of Chapter 5 (commencing
with Section 15830) are hereby appropriated, without regard to fiscal
year, to the board on behalf of the Department of Veterans Affairs
for the construction or repayment of any loans related to the second
site of the Southern California Veterans' Home.
   (h) The State Public Works Board may borrow funds for all phases
of the projects from the Pooled Money Investment Account pursuant to
Sections 16212 and 16313, and any other legal fund sources.
   (i) The board may authorize the augmentation of the cost of the
construction of the sites set forth in this chapter pursuant to the
board's authority under Section 13332.11.  In addition, the board may
authorize any additional amounts necessary to pay the costs of
financing, including, but not limited to, the payment of interest
during construction of the sites, any additional amount as may be
authorized by the board to pay the cost of financing a reasonably
required reserve fund, interest payable on any interim loan for the
homes from the Pooled Money Investment Account pursuant to Section
16312, and the costs of issuance of permanent financing of the sites.
  Notwithstanding subdivision (d) of Section 13332.11, the board
shall defer all augmentations in excess of 10 percent of the amount
appropriated for each capital outlay project until the Legislature
makes additional funds available for the specific project.
   (j) The Department of Veterans Affairs is hereby authorized to
enter into any lease agreement with the State Public Works Board
necessary to achieve completion of the construction phase of the
second, third, and fourth Southern California Veterans' Home project
sites.  The Director of Veterans Affairs shall notify the Chairperson
of the Joint Legislative Budget Committee of the director's
intention to execute any lease agreement authorized by this section
at least 45 days prior to its execution.
  SEC. 2.  Chapter 2 (commencing with Section 1100) is added to
Division 5 of the Military and Veterans Code, to read:

      CHAPTER 2.  VETERANS' HOMES BOND ACT OF 2000
      Article 1.  General Provisions

   1100.  This chapter shall be known, and may be cited, as the
Veterans' Homes Bond Act of 2000.
   1102.  As used in this chapter, the following terms have the
following meaning:
   (a) "Board" means the Department of Veterans Affairs designated in
accordance with subdivision (b) of Section 1108.
   (b) "Committee" means the Veterans' Home Finance Committee created
pursuant to subdivision (a) of Section 1108.
   (c) "Fund" means the Veterans' Home Fund created pursuant to
Section 1103.

      Article 2.  Veterans' Homes

   1103.  The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the Veterans' Home Fund, which is
hereby created in the State Treasury.
   1104.  (a) Upon appropriation by the Legislature, money in the
fund shall be used by the Department of Veterans Affairs for the
purpose of designing and constructing veterans' homes in California
and completing a comprehensive renovation of the Veterans' Home at
Yountville.  Funding from this bond shall be allocated to fund the
state's matching requirement to construct or renovate those veterans'
homes in Section 1011 first, and then fund any additional homes
established under this section.  These homes shall be in addition to
sites authorized under Section 1011.
   (b) Notwithstanding any other provision of law, construction
contracts awarded for veterans' homes shall have a statewide
participation goal of not less than 3 percent for disabled veteran
business enterprises, as defined in subdivision (g) of Section 999.

      Article 3.  Fiscal Provisions

   1105.  The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the State Treasury to the credit of the
Veterans' Home Fund, created by Section 1103.
   1106.  Bonds in the total amount of fifty million dollars
($50,000,000), not including the amount of any refunding bonds issued
in accordance with Section 1130, or as much thereof as is necessary,
may be issued and sold to provide a fund to be used for carrying out
the purposes expressed in this chapter and to be used and sold for
carrying out the purposes of Section 1104 and to reimburse the
General Obligation Bond Expense Revolving Fund pursuant to Section
16724.5 of the Government Code.  The bonds, when sold, shall be and
shall constitute a valid and binding obligation of the State of
California, and the full faith and credit of the State of California
is hereby pledged for the punctual payment of both the principal of,
and interest on, the bonds as the principal and interest become due
and payable.
   1107.  The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
chapter and are hereby incorporated in this chapter as though set
forth in full in this chapter.
   1108.  (a) Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this chapter, the Veterans' Home Finance Committee is
hereby created.  For purposes of this chapter, the Veterans' Home
Finance Committee is "the committee" as that term is used in the
State General Obligation Bond Law.  The committee consists of the
Treasurer, the Controller, the Director of Finance, and the Secretary
of Veterans Affairs, or their designated representatives.  The
Treasurer shall serve as chairperson of the committee.  A majority of
the committee may act for the committee.
   (b) For purposes of the State General Obligation Bond Law, the
Department of Veterans Affairs is designated the "board."
   1109.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in this chapter
and, if so, the amount of bonds to be issued and sold.  Successive
issues of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   1110.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds maturing each
year.  It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act that is necessary to collect that additional sum.
   1111.  Notwithstanding Section 13340 of the Government Code, there
is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this chapter, an amount that will equal the total
of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Section 1112 appropriated
without regard to fiscal years.
   1112.  The Director of Finance may authorize the withdrawal from
the General Fund of an amount or amounts not to exceed the amount of
the unsold bonds that have been authorized by the committee to be
sold for the purpose of carrying out this chapter.  Any amount
withdrawn shall be deposited in the fund.  Any money made available
under this section shall be returned to the General Fund, plus an
amount equal to the interest that the money would have earned in the
Pooled Money Investment Account, from money received from the sale of
bonds for the purpose of carrying out this chapter.
   1113.  The Department of Veterans Affairs may request the Pooled
Money Investment Board to make a loan from the Pooled Money
Investment Account in accordance with Section 16312 of the Government
Code for the purposes of carrying out this chapter.  The amount of
the request shall not exceed the amount of the unsold bonds that the
committee, by resolution, has authorized to be sold for the purpose
of carrying out this chapter.  The department shall execute any
documents required by the Pooled Money Investment Board to obtain and
repay the loan.  Any amounts loaned shall be deposited in the fund
to be allocated by the department in accordance with this chapter.
   1114.  All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
   1115.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law.  Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
   1116.  Notwithstanding any provision of this chapter or the State
General Obligation Bond Law, if the Treasurer sells bonds pursuant to
this chapter that include a bond counsel opinion to the effect that
the interest on the bonds is excluded from gross income for federal
tax purposes, subject to designated conditions, the Treasurer may
maintain separate accounts for the investment of bond proceeds and
the investment earnings on those proceeds.  The Treasurer may use or
direct the use of those proceeds or earnings to pay any rebate,
penalty, or other payment required under federal law or to take any
other action with respect to the investment and use of bond proceeds
required or desirable under federal law to maintain the tax-exempt
status of those bonds and to obtain any other advantage under federal
law on behalf of the funds of this state.
   1117.  The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIIIB of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
  SEC. 2.5.  Section 1.5 of this act shall become operative only if
the voters approve the Veterans' Homes Bond Act of 2000, as set forth
in Section 2 of this act, at the March 7, 2000, statewide primary
election.
  SEC. 3.  Chapter 2 (commencing with Section 1100) of Division 5 of
the Military and Veterans Code, as added by Section 2 of this act,
shall become effective upon the adoption by the voters of the
Veterans' Homes Bond Act of 2000, as set forth in Section 2 of this
act.
  SEC. 4.  (a) The Secretary of State shall submit Chapter 2
(commencing with Section 1100) of Division 5 of the Military and
Veterans Code (the Veterans' Homes Bond Act of 2000), as set forth in
Section 2 of this act, to the voters at the March 7, 2000, statewide
direct primary election.
   (b) The Secretary of State shall ensure the placement of Chapter 2
(commencing with Section 1100) of Division 5 of the Military and
Veterans Code (the Veterans' Homes Bond Act of 2000), as set forth in
Section 2 of this act, on the March 7, 2000, statewide direct
primary election ballot.
   (c) The Secretary of State shall include, in the ballot pamphlets
mailed pursuant to Section 9094 of the Elections Code, the
information specified in Section 9084 of the Elections Code regarding
the bond act contained in Chapter 2 (commencing with Section 1100)
of Division 5 of the Military and Veterans Code (the Veterans' Homes
Bond Act of 2000), as set forth in Section 2 of this act.  If that
inclusion is not possible, the Secretary of State shall publish a
supplemental ballot pamphlet regarding Chapter 2 (commencing with
Section 1100) of Division 5 of the Military and Veterans Code (the
Veterans' Homes Bond Act of 2000), as set forth in Section 2 of this
act, to be mailed with the ballot pamphlet.  If the supplemental
ballot pamphlet cannot be mailed with the ballot pamphlet, the
supplemental ballot pamphlet shall be mailed separately.
  SEC. 5.  (a) Notwithstanding any other provision of law, with
respect to the Veterans' Homes Bond Act of 2000, all ballots of the
election shall have printed thereon and in a square thereof,
exclusively, the words "Veterans' Homes Bond Act of 2000" (At this
point, the Attorney General shall include the financial impact
summary prepared pursuant to Section 9087 of the Elections Code and
Section 88003 of the Government Code).  Opposite the square, there
shall be left spaces in which the voters may place a cross in the
manner required by law to indicate whether they vote for or against
the act.
   (b) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in subdivision (a) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General may
include the financial impact summary prepared pursuant to Section
9087 of the Elections Code and Section 88003 of the Government Code.
The ballot label is the condensed statement of the ballot title and
the financial impact summary.
   (c) Notwithstanding Section 13282 of the Elections Code, the
public shall be permitted to examine the condensed statement of the
ballot title in subdivision (a) for not more than eight days, and the
financial impact statement from the time it is received by the
Secretary of State until the end of the eight days.  Any voter may
seek a writ of mandate for the purpose of requiring any statement of
the ballot label, or portion thereof, to be amended or deleted only
within that eight-day period.
   (d) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voter's choice by means thereof are in compliance with this
section.
  SEC. 6.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to provide adequate facilities for the care of California'
s veterans at the earliest possible time, it is necessary for this
act to take effect immediately.
